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Global Development: Part II Europe
France
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France is the founding member of the European Union and has the world's fourth largest industrialized economy. Its population is 59 million and its GDP is $1.4 trillion with an inflation of 2.4%. Per capita income is about $23,226. The exchange rate is 5.90 FF=$1.00. France is among the European countries changing to a common currency, the Euro. The top income tax rate is 52%, and the corporate rate is about 33%. The government also imposes a 19% to 33.33% capital gains tax, a value-added tax of 20.6%, a business activity tax of up to 22%, and a social contribution tax of 12% to 45%. The government consumes 19.6% of GDP.
France's 1998 fleet of passenger cars numbers about 26 million. France for many years maintained a closed market that excluded Japanese automakers and resulted in a high population of PSA and Renault vehicles. Today, all companies have free access to the French market. Market share for PSA and Renault is expected to decrease slowly, not only in France but globally as well. Neither company is very cost-effective in their operations. Volkswagen and Opel are expected to pick up Renault and PSA market share losses. Ford and Fiat are expected to maintain their market share while Japanese's automakers expect to increase share.
Passenger Car Production (thousands of units)
| Manufacturer |
1998 |
2000 |
| PSA |
1700 |
1705 |
| Renault |
1390 |
1380 |
| Mercedes Benz |
35 |
70 |
| Sevel-Fiat |
25 |
25 |
| Toyota |
0 |
20 |
| Total |
3150 |
3200 |
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Country profiles were provided by Raymond Champagne
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